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tv   Mad Money  CNBC  January 25, 2014 4:00am-5:01am EST

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my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always home work and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job is to try to educate and teach you. so call me at 1-800-743-cnbc. it is over yet? can i come out from under the desk? is the coast clear? did the bell ring yet? did it?
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i guess it's safe to come out again. oh, geez! all right. just a second. all right. all right. all right. i know this isn't the best way to start a game plan. but then again, it isn't everything where the dow plummets 318 points and the s&p plunges and the nasdaq nose dooifs. what can i say about what went on today? how about it pretty much unfolded where we told you it might yesterday. as the forces of panic won't up through that quickly on the bull's necks. once again the pain was not created in this country. in fact, the major american companies that reported in the last 24 hours, they all were remarkable earnings. honeywell, proctor & gamble, starbucks, microsoft, bristol-myers squib. as i report over the conference calls of these companies this morning, was struck by two things. first of all, all these companies not only did better than expected, they all guided
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higher which as i tell you get rich carefully is what will produce the biggest gains over the long term. and second, those fabulous numbers, they hardly mattered at all today. which brings me to the central issue of the game plan. the need to address this, you have to opine before you even get to next week. you have to opine on what the question of exactly how bad things really are out there. it doesn't pay to go right into the companies until we get a little prism. most important thing you need to know about this two-day selloff is that it is to be expected. that's right. you heard me. it is to be expected. in fact, it's amazing that we haven't had one earlier. you just don't have a rally for as long as we have had without some sort of selloff. here it is. remember, joe dimaggio didn't get a hit in that 57th game after his 56-game hitting streak. what a bummer. many of the people who panicked today would have done this to him back then.
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this market though is a dimaggio market. so we can't just write it off after a couple of bad apples. second, there are several very real proximate causes of the selloff we need to untangle. there is the emerging market contagion. the shocking declines in the arg again teen and turkish currency. that's surntly worrisome if you're in those markets. of course you shouldn't be in those markets. then there is china, not going to bother ringing the bell. we know china is in trouble. and all of the insurances assurances otherwise mean nothing in the face of potential huge chinese banking crisis. didn't minimize europe when we stumbled into that crisis. i also know that during the european mess, the united states was in much worse shape than it is now. if we have been hit with the chinese crisis like the one that is brewing right now, then i would have told you that i would be concerned, scared maybe. but this is not two years ago.
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now the u.s. is the strongest market in the world. back then it was china. and as i have said last night, we're not -- we're going to have to go through a couple days of real blood letting. believe it or not, it has started to cease in the last couple years for the last economic sensitive and higher yielding stocks even as the futures were taking things down because there was so much worry about what would happen this weekend. they'll be overly discounting the problems in china, problems that are going to hit the chinese consumer a lot more than the chinese consumer over there. the chinese government is in less in teaching mode about taking in people. less in teaching mode about taking too much risk.
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let me give you the highlights of what we're looking for this week. monday morning we're going to hear from caterpillar. this is going to be tough, people. i fear it will be a rectal thermometer when it comes to china. you're going to deal with a whole new installment of the sky is falling prc style. fact of life. then after the close, we get results from apple. and i think it's going to be a test of value. the stocks cheap. it has a ton of cash to reduce the buy back. it has an activist, carl icahn clam mering for a higher price. and fortunately it has a competitor, samsung, that seems to be fault terg. all this said, cat is big.
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and this comes in the morning. and apple's bad in the evening. then i can tell you that tuesday will be some sort of woosh day. a real give up capitulation session that is going to make you want to get aggressive about buying the stocks of companies that already have good earnings. tuesday i'm watching three companies. first there's american airlines. you know from one of my get rich thing is buy stocks in companies that allowed to create benign oligppolies. this is a match made in heaven. so i think we're going to hear about a terrific road map. not this quarter but the road map f apple and cat are bad and this calls a good one, you probably don't want to wait, just go by aal. tuesday also want to hear from ford and dupont. i want to hear what is going on vul ner ran bli. ford is moving big into china. now that argentina is falling apart, we have to listen extra close to ford's latin american
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facts and figures. dupont is going to give us a sense of how immune the new dupont is to these global issues. wednesday is the day that i'm counting on to tell fuss there are buyers looking to get into stocks without much more economic exposure because they think a recession is on the horizon. will listen to biogen and wellpoint which are pristine health care companies that go up when the rest of the market goes down. thursday we hear from three amazing tech companies that people don't realize are tech. they are called stealth tech in the get rich carefully, 3m, underarmor and colgate. if we're still down by thursday, look to the stocks as places to deliver good numbers. unlike today we still haven't discounted the negative news, by next thursday we should be less emotional. today was very emotional. these are stocks that could shoot higher if the market once again is willing to differentiate among stocks by then between the good, bad and, yes, the ugly. it doesn't feel like it on a day like this. eventually we do reach a point where dimaggio can get hot
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again. and if we have four straight session that's are horrendous going into friday, you may have to be ready to buy stocks no matter what because it would be so oversold. i'm suggesting considering abbvie. a terrific spinoff from abbott labs. if you're bearish about global growth, weyerhaeuser if you think the interest rates are lower to restart housing and finally mastercard if you just want a terrific secular grower by next friday may be trash beyond all recognition. some feel this already happened. here's the bottom line. next week very to expect the worst but we also have to prepare for the best. because in the end, this market is a hall of famer, people. it doesn't get sent down to the minors as easily as the red ink on your careen suggests. it will tell whether you the bear is out of gas and if they all strike out, then keep your bat on your shoulder and keep waiting for your pitch. let's be clear, don't step too close to the plate monday or you just might get beat. john in california, please. john?
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>> hey, jim boo-yah from the sacramento area. >> i was able to live out of my car. what's up? >> i got involved in the play on natural gas for me was united states natural gas. i got it a while back. i tend to hold things long. that is my play on natural gas. what do you think of usng? >> look, i'm a guy that doesn't like the way that -- first of all, congratulations. that was a right call. but going forward, if you want to play natural gas, it is cog. if you want to yield, it's going to be conocophillips which is the old burlington. can we go to angela in new york? >> hey, jim. i just need to know about ticket nes. >> no. i mean look, you know this is like argentina and coming to argentina right now and coming to me with turkey. this is a blast zone stock. when you have a stock like schlumberger, it's not doing well, what are we going to do with that one?
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sorry. it was a speculative play. it's not worked. larry in massachusetts? >> hey, jim. how are you tonight? >> all right. how are you? >> terrific. >> when howard shultz of starbucks confirming that internet commerce has supplanted mall traffic, presumably into the future, are you still comfortable with federal realty investment? trust is diversified enough? >> yes, i am. i was also thing that don't forget about steve tanger. that may do better right now, skt could be a better buy. today's pain real? yes. this market is indeed, you must understand, a hall of famer. it should not be written off so easy. i say let's be cautious. but also maybe we get optimistic. keep the bat on your shoulder until the ball comes real slow and then you get a hit. "mad money" will be right back. >> coming up, crystal clear?
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this company's chips are used to create stunning images on lcd screens. and stocks are stunning the street. shooting up over 350% in the last year. missed the move? or is this just the beginning of the high definition performance? later, game time. it's no secret seattle can bring it on the football field. but which companies in the emerald city are best suited to help your portfolio go beast mode? cramer is giving his scouting report on the city's best players. plus, supermarket of tech. this market wide selloff could be creating opportunities to snap up a tech stock on sale. and no one know who stops in tech more than corporate supplier havnet. find out who's taking share when cramer talks to the ceo. that's all coming up on "mad money."
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you know the terrible bad day for the market, it's my job to remind you that this is not just kroshing stokts left and right, it's creating fabulous buying opportunities. but only if you have the courage to take it and many people don't. we want to visit a stock that is roaring, one that pulled back very nicely over the last couple days though. it is a very attractive entry point. talking about high max technologies. you always ask me on twitter, himx. the chips are used to create images on lcd screens. you'll find display drivers on flat screen tvs, computer monitors, laptops, tablets, smartphone displays. but the big reason we initially got behind this stock is because they have a liquid crystal on
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silicone micro display business where among other things they make good chips that power the display on google glass. google's computerized smart glasses that are coming out sometime this year. i went to sun glass hut, they didn't have them. i initially highlighted himax in october based on a recommendation of the trifecta stock newsletter. they only buy the stocks that are strong enough, fundamental perspective and the chart perspective. we went to the founder and senior analyst and he runs the technical side of this product. and since then himax rallied from $10 to $13 and 55%. come on. remarkable 33% run in just 3 1/2 months. the last 12 months the stock is on fire. it rallied 350% to. tonight i want to circle back to the story. in the last two days, himax got just eviscerated with the rest of the market, falling 8.5%. i think you can get in an
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amazing entry point in a stock that rarely seems to go lower. everyone is probably too scared to reveal themselves and they're going to turn this segment off and not do it and i'll be pissed off at you. yeah. that's why we're doing a special off the charts tonight. we're going back to the great line to see where he thinks himax is headed next. you should only make decisions based on the fundamentals. when it comes to timing your buys and sells and we're in a timing market, it is incredibly helpful. check out himax's daily chart. the last time they caught a big pullback was in november. since then the stock rallied 51%. i remember that early november pullback. everyone was scared to death to take it. in other words, if you want himax into weakness in the last major selloff, you ended up with a stupendous win. we could be in the exact same situation right now. what else does he like about the chart other than the very strong trading after the recent pullback? he points back that buyers come in on himax on every dip. another advantage. the momentum indicators in this
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chart like the index up at the top are in very good shape. he likes this williams percentage r oscillator. that is the favorite. that's a way to tell if it is oversold. suggest that himax can remain overbought for long periods of time. i know that seems counterintuitive. that is something that i credit lank with, so it can rally too far, too fast, and then just keep rallying. on the other hand, back in november it was only oversold for a few days before bouncing right back. in other words, you do not get one of these opportunities very often. and when you have them, wow. you got to take them. second lange moving average divergence indicator is about to flash a big fat buy signal. where the black line will cross over the red one. i couldn't believe this. this is like so perfect. highlight the macd.
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we had a lot of success. the last time it flashed a buy signal was you guessed it in late november. right before the stock took off from $10 to $14 for a period of weeks. no one wanted it then either. this is a gorgeous chart. himax has much more room to run. take a look at the weekly chart. when you see here, what you see is the stock has been consistently strong uptrend. the last 15 months. every time himax has fallen, the stock has bounced right back. we're doing this, betting that on monday it's going to go right there. okay? lank says the uptrend is still intact even with the current full back. it could drop close to $11 and change and the uptrend would still be intact. just maybe get a better entry point. so if you come in on monday and you think come here and say i got to sell, maybe you should change your mind and buy, what else? according to the best technical trends rarely ever give you a chance to get an award at that decent a price. it is going to happen.
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that's why in some ways i'm actually excited about the current market selloff. true stocks are taking a beating. it's not like i'm some kind of a masochist. well, i am some kind of a masochist. but not when it comes to the stock market. i like this hideous pullback. i don't know if i could recommend himax in good conscience if it was still trading at $14.80. i would do a little trimming. but here, sure. if you own it already, you get a decent place to start building position when we open lower on monday. if it goes lower, i would buy a little more. one caveat though, himax reports in three weeks, three days after my birthday. february 13th, not significant, but i wanted to mention it. last time himax report the was in early november when the stock got clobbered because the company only met wall street's estimates rather than beating them. i was getting disappointed. you have a stock that tripled for the year, beat the heck out of the numbers and raise guidance. the thing is that very day the street's trifecta stock newsletter said you should
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double down on the stock. in part because they are having a lot of success in broadening the product portfolio, moving away from the display drivers. that part of the business was up 30.5% and the liquid crystal silicone display business is ready to roar ahead of the big google glass launch this year. by the way, google actually owns 6.4% stake in the liquid crystal and silicone subsidiary. they really believe in this technology. and they've been expanding to meet within expecting surge and demand. we know that is right. sure enough, the trifecta stocks team who does the fundamental analysis was right. they rapidly rebounded and resumed the march higher. this stock is driven more by the anticipation over google glass than its own earnings. so if himax gets slammed again, i urge you to do your home work. if nothing is wrong, you have to buy more. here's the pot tomorrow line.
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himax is a speculative momentum stock. it's already given us a terrific gain since i first mentioned it. lange now says that himax has much more room to run. i think you can get a terrific opportunity to buy this one in a rare moment of weakness that i certainly expect when we come in monday morning. can we go to louie in new york? >> louie, hi, jim. boo-yah from staten island. how are you? >> oh, man. i tell you, i can't -- i want to go to the islands. staten islands, different from the islands. go ahead. >> a little depressed today, obviously. i got a well diversified portfolio thanks to you. but i have a lot of money in bidu and i just got creamed the last week on it. i want to get your take on it. should i hold it or bail out or buy more? >> no. don't buy more. that's in the blast zone. we don't like to be in the blast
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zone. we like to buy stocks that are protected from the blast zone. if that stock goes up on a knee jerk rebound, you're going to have to say, you know what? bidu, it was nice to meet you. on days like today, pick through the rubble. i came up with one because tech or not, plot, funding, and the chart all say it could be ready to buy on monday. himax is a diamond in the rough. after the break, we'll have more "mad money." >> coming up, game time. it's no secret seattle can bring it on the football field. but which companies in the emerald city are best suited to help your portfolio go beast mode? cramer is giving his scouting report on the city's best players.
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i'm the best corner in the game. don't you ever talk about me. don't you ever open your mouth. close observer of the show, they know i'm always game for a good rant. and for the record, michael crabtree, you know nothing! they know nothing!
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anyway, i say bet the farm on seattle. no, not the seahawks although i like them very much to beat the broncos in the super bowl. i am sending a check to sherman's charity. i share that man's passion. i'm talking about betting on the company that's are from seattle because they, like running back marshawn lynch are in beast mode. even with the market that feels like it's getting the orange crush. just think about it. what was the best performing dow stock last year? boeing. invest before the dow stock last year, which company is playing havoc with brick-and-mortar retailers? amazon. which company delivered the best growth of any retailers? costcos. and which two companies put up numbers so incredible they bucked the worst day in ages? how about seattle based microsoft and starbucks. the former was a real shocker. for years we've been frustrated with microsoft. there is always something that went awry. some line of their business that stalled or failed or missed expectations. but today the last real quarter
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of the obama regime before he steps down, microsoft put it together with great numbers from window and enterprise software and surface and the x box franchises. it was a truly good performance. the stock would have been up twice as much if it wasn't such a chaotic session. the big winner is starbucks for what the amazing ceo, howard shultz said on a well crafted conference call. you have to listen to the conference calls to find out what is really going on and match that to what was expected of the company going in. the starbucks quarter and aftermath represented everything that is good and bad about the stock market. and it's why i'm always confident that you at home can trump the wall street wise guys when it comes to long term wealth creation. i was watching cnbc last night and there were headlines and immediately made the quarter disappointing. the stock went down from $73 to $71.
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it was a big miss. the sellers went wrong. they didn't understand the conference call. as people expected the company to issue earnings short of the consensus. in fact, the numbers were in line. what didn't fit the scenario of the decline that had already occurred in the stock before the report. second, the hemorrhage picked up and there was a slight disappointment in the united states this quarter but they didn't acknowledge the incredible turn in europe which was monumental. finally, the guidance in the future, they didn't know starbucks sold a huge number of gift cards this quarter. far more than anticipated. those cards will produce a huge shift the first quarter. far more than we might ever have seen and certainly more than the quarter before. what else did the headlines miss? how about excellent sales in china? come on. this was amazing.
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why was it amazing? because at the beginning of the quarter the chinese communist television channel with a 1.2 billion viewers did a half hour slam job on starbucks saying they were gouging the chinese. numbers were better after that. how about the incredibly fast start in india that could produce very meaningful numbers later this year? how about the success of modelling starbucks and adding drive throughs and offering more food. the real thrust came at the very beginning of the call when schultz traced out what he called a seismic shift in retailing that occurred in the past quarter. the twilight of the traditional bricks and mortar small shopper versus the home shopper and what it means for the retailers of the future. schultz pointed out that many commentators blame weak sales, weather, shortened period between thanksgiving and christmas and the government shutdown. shultz dismissed these entirely. traffic he said went down because america is changing. this was the year when people
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decided that they like shopping online more than they like going to the mall. and he says they're not going back. it's a secular change. it's gist starting. shultz said starbucks sold the ship company and able to embrace global and social and made starbucks more immune than the other retailers. the technology they invested in allowed lines to move faster and giving companies chance to add more complex items like baked goods, carbinated drinks and new coffees. coffee does not compete with the crosstown neighbor, amazon. or to put it in another seattle-like way, amazon's got the original beast mode on offense, marshawn lynch. he plays for him. but shultz is the equivalent of cramer ubberfave richard sherman whose jersey i'm wearing, he is capable of winning the super bowl of retailing and he could win the super bowl for the seahawks. there was so much fabulous in
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the k-cup sales. on hideous days like today, you have to remember like pete carroll may want you to bet with the seattle seahawks, shultz wants you to invest with seattle based starbucks. he's the very embodiment of what i salute in "get rich carefully." the ceo coaches you to win even on a day like today when all others seem to be losing. stay with cramer. >> monday, kick off the trading day with "squawk on the street." live from post 9 as the nyse. >> this was a great growth stock report. see you later, steve. >> it all starts at 9:00 a.m. eastern.
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it is time, it is time for the lightning round! what is that? are you ready? time for the lightning round. liz in new mexico.
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>> boo-yah, jim cramer. first time caller, long time listener and admirer. >> thank you. >> i allowed my nyx shares to morph into intercontinental exchange. they suddenly tanked before the current correction. couldn't find any news. found out there is a ton of shadowing negotiations in the background. wonder if it's a buy, sell or hold. >> look, this is the stock that is going to break big in the next couple of days because people are going to say that the pain is going to set in. it's a $200 stock. it's a big dollar amount stock. i think it's a buy. i think it's buy. tom in texas. please, tom? >> yeah. >> go ahead. >> enjoy your show, jim. i'm inquiring about cmix. >> i like very much. remember, the emerging market is doing bad. they're trashing a lot of mexico. i listened to the interview today. i have tremendous faith in
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mexico. i would be a buyer of the stock. brian in oregon. brian? >> yes, sir. i just want to say god bless you for helping the little guy. >> well, i just hope i am strong enough to do it. this is a very ugly market. i want to keep my game. what's up? >> it is a little scarey. thank you so much. i want your opinion, please, on boston scientific. >> boston scientific was recommended by four different people the last two weeks, therefore, the stock is up a little too much. on a pull back, they'll reiterate. if it goes down a buck or two, it's a terrific place to go in. roman in california? >> thank you for taking my call, jim. >> thank you. >> what do you think of eastman chemical company? >> i think eastman chemical is excellent. i have been looking at the stock and trying to figure out where the entry point is? i think we're going to have to take advantage of it real soon. edward in connecticut. edward? >> boo-yah, jim, from connecticut. >> nice. what you got?
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>> question is for wwe with the wwe network and wrestlemania 30 coming out, do you think this has room to run? >> i have to tell you the stock moved from 15 to 20. it's difficult to be able to be up. but this company has clear momentum. it's entertainment area. i like cbs and time warner. you know what in it's in the pantheon these days. it finally has game. dean in illinois. dean? >> hey, jim. big boo-yah from chi-town. >> excellent. >> i want to know about portfolio recovery associates. do you think there is great earnings growth and still a buy? >> recovery of receivables, i think people will like this stock. people see there is a slowdown. i only like it for a trade. you know what i like instead of this? h & r block. i think that was a terrific idea. it has a lot of staying power. i go with h & r block. one more. allen in california. allen? >> hi, jim.
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i wanted to talk about air gas stock. i lost my job about a year ago and i kept my stocks in air gas. and i want to know if i should keep it or diversify it or what? >> well, first of all, i hope you get a job soon. i know it's tough out there. i'm from the air gas area. i will tell you this, there was a cell call on air gas. a little devastating to me. i feel like, you know what? i have to wait to see the quarter. what did they really know? i thought business was pretty good. i'm not going to be able to make a real judgment. understand these industrial companies are coming in right now. don't be shocked if stock goes down three or four points on absolutely no news whatsoever. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by tg ameritrade. >> last week there is a question of sustainable of value on
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pharmaceuticals. vrx. so when herb threw his cautionary red flag last week, he was expressing a seriously divergent view. the master of red flags -- i'm a little tired. >> and now, your most pressing questions answered in "cramer's playbook." >> get a plan! >> to put it bluntly, the alcohol business is on fire! how do we play it other than by getting drunk as a skunk on my dirty linoleum floor, or at my soon to be open mexican restaurant in brooklyn? which of course goes without saying. dimaggio.
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check on my pal johnny walker. the red sometimes confusing. jack! not that i want to brush my teeth it with. captain of my team, captain morgan. jack daniel's honey. i thought it was a woman's drink. i say jack up with brown foreman. >> stick with cramer.
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sometimes when a company reports excellent results in a selloff, the strong numbers get lost in the shuffle. the stock will sell off anyway because people panic. that's what happened to avent yesterday. a very important company. the largest supermarket of technology on earth. as i tell you get rich carefully this company avent is a fabulous sell for all things tech. they're the top distributor of tech components. the company is also a big tech solutions business. so when avent reported yesterday and beat the stuffings out of the market, higher than expected revenues and grossed 10.8% year over year and upside guidance, the trifecta, i thought it was important. but avent had the misfortune of
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reporting during a hideous point in the market. it got slammed. down 5.9%. the stock was down another 93 cents today or 2%. you can now buy avent below $2 where it reported, the best i've seen it in years. it is last time we spoke to the ceo in october. even after the pullback, avent still rallied 8% since i interviewed him. but after the numbers reported yesterday, i think the stock has more room to run. of course when smoke clears. what's good for avent is good for all the technology companies. let's check with the ceo of avent and find out more about the quarter and where the company is headed. welcome back to "mad money." >> thank you, jim. >> i have to tell you, i was looking at the quarter and thinking in the previous week i think the stock might have been up by 10%.
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you had numbers in here that were remarkable, particularly at 30% increase and for a year over year for some of the businesses that have been really down, why did everything click so well in the last 90 days and can it be erased by a few days of bad stock market action? >> we were pretty proud of those results. you hit some of the highlights as well and it was a record revenue quarter for us at $7.4 billion. you know, our philosophy is we're going to continue the right things over time. communicate to our investor base, what we're doing, why we're doing it. trying to be consistent in our expectations from capital allocation, et cetera. and we'll let rest take care of itself overall. if anything, i would say perhaps as you mentioned, we've had a very nice run up if you look at three, six, or 12 months, perhaps as good as it was beaten rays wasn't good enough based on the expectations. then you throw-in the overall market, certainly in the short term nothing we're going to worry about. >> let's talk about one area that i was pleased to see. it had been something you and i had talked about the last three or four quarters that was not
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good in our emea, you have been dealing with weak demand. i kept saying when it is going to happen? you had revenue growth at 31% in constant dollars? >> that's right. >> how is that possible? >> jim, that was in our i.t. business. two components and computers. our components business in europe is doing better overall. they had their third quarter in a row of year over year growth. and this quarter, they got to double digit year on year growth. our i.t. business had been lagging and actually, jim, they're very close now but just below approaching year on year growth. even though both groups, computers and components had year on year growth that, is the one lagging region there. and that 31%, remember that year end budget flush causes a great increase towards the end of the year. and we're real close and looking forward to getting that business to cross over as well. >> now, you brought it up. i feel it's fair game. i had thought maybe i'm reading the release wrong going over the numbers wrong. maybe i'm missing something because ibm that business they transferred to lenovo is a 5% to 6% technology solutions global revenue customer of yours.
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but what i can tell from your call, you don't necessarily have to expect that you're going to lose that business. >> jim, that's absolutely right. so number one, the announcement is brand new, just out on the street. number two, when we see these in the past, there is a high degree of focus on continuity in the business and the business flow and the deals that are going on. so i expect between ibm and lenovo that that continuity of business is going to be really important as they look through the approvals from the regulatory agencies, et cetera. and then third, remember now, it's a part of the solution. it's the x-86 server business. as we talked about many times over the years, it's really an i.t. now. it's about the solution. it's about hardware and software and services put together to solve solutions. we believe that value is still going to be relevant for the new owner as well and perhaps we'll look forward to gauging with a new relationship with them. >> okay. you know, again, stick with technology solutions.
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you hear the word asian today, it moons sell, sell, sell. we just decided there is a chinese trust that is in trouble. there's a $500 million bond that's in trouble. so, therefore, asia must be sinking. you can't get that kind of growth and then have it stop on a dime because of a chinese local bank doing poorly? am i right? >> yeah, jim, i would agree. remember, i think most of those new developments occurred after the close of the calendar year, right? but still, we haven't seen any signs on our dash boards yet. we even talked about the quarter to date and book to bill. that important component number for the first three weeks of january. and we saw nothing abnormal in there to indicate an expectation of some type of major slowdown in asia and china. >> all right. one last question. you have always been very smart. when the stocks are really down, you say, hey, this buyback is interesting. when the stock is really up you say we have a lot of interesting m&a activities. is this one of the situations where if this particular stock market decline which seems totally unrelated to avnet is opposite to what avnet is doing,
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if that takes the stock down and your by stays as it is, i would presume that you would go back into the stock market if your stock got really hammered given the strength that we're seeing. >> jim, we still have 225 million authorization outstanding on our buyback. that's exactly what we're going to do. we're going to take a look at our own internal projections. our own derivation of intrick sin value and we will compare that to what we think is happening in the market and when we see an opportunity, then we will take advantage of it. >> i know it seems weird, congratulations. you really shoot the lights out. great work. >> good to talk to you. >> thank you very much, jim. >> okay. you know how i say look, you have a pull back, buy. okay, why do i say that? sometimes you have companies that do really well but their stocks go down for no reason having to do with the business. you now watch the stock go down for a business that has nothing to do with the business. this is a buy on a pullback. thank you for the chairman and ceo of avnet. stay with cramer.
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please do yourself a favor and stay out of the blast zone, will you? today i heard many people talking about their picking among the rubble of the emerging markets for terrific opportunities? they see big declines. they want in. boo! >> listen to me, i'm telling you. do not listen, do not take account of the sirens. they will lure you into the rocks. you will get crushed. do not listen to their pristine logic.
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believe me when i say they have never, ever, ever been near the battlefield of the emerging markets. these commentators are armchair generals. they never been in the fog of the emerging markets war. but i have. and i barely live to tell about it. little more than two decades ago i got the emerging markets bug. i noticed how turkey was becoming an international juggernaut with a growing middle class. i wanted in to turkey. so again, i did research and recognized if the turkish growth continued, millions of people will be leaving poverty behind and advancing to middle class status. what do members of emerging classes do? they buy houses, right? so i went and bought millions of dollars worth of shares in the bank of america of turkey. and the whirlpool of turkey. when i was making the purchases was that the turkish inflation rate was starting to get out of control and more hot money was flowing out of turkey than in. all i knew is the companies were putting up very big turkish numbers.
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and turkey was marching toward a boom of epic proportions. sound like today? right. sure enough. we're looking in this fabulous market. every day my trading market showed that they were a same, maybe a little higher. what i didn't realize is that that was turkish leer. they didn't adjust for the currency. and the turkish leer which was both falling apart at the exact same time i thought i was doing well. that's right. the next thing i know without the stocks doing anything at all, i had lost half of the money i had invested because the currency collapsed, stocks stayed the same. but the currency collapsed. yep, i've been losing money, hand over fist the whole time. i didn't even know it. nor did my broker. that's the kind of thing that happens when you play with the fire of emerging markets and don't know what you're doing. i'm sure that there are classic opportunities in turkey or
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argentina or south africa right at the moment. i'm sure there are competent advisors that say this is the time to pull the trigger. here's my advice. don't buy into their panic. buy into ours. our stocks in the u.s. are feeling a lot of the pain of emerging markets today. but the companies underneath the stocks aren't feeling the pain at all. that's precisely the opposite of the emerging markets, where the pain of the stocks is, indeed, being shared with the actual pain of the companies groaning underneath them. don't seek out their pain. i'm reading about investing in the same turkish companies that took me down more than two decades ago. same ones. the people talking about them, people talking about buying, you know what? i had a hard look at them. they look like they may have been in diapers whether i got crushed in these stocks. believe me, if they keep this up, they'll be needing those diapers again real soon. stick with cramer. not complaisant, skeptical,
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not complacent, skeptical, not pessimistic, opportunistic, not ready to jump, trying to find out what is right. we do it together. we've always done it together. you think this is our first decline together?
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no. we know how to handle it. and you have come to the right place. i can't wait for monday. all i can say is, there's always a bull market somewhere, and i promise to find it just for you right here on on "mad money." i'm jim cramer, and i'll see you monday! "the suze orman show"... building a strong financial foundation for 2014 -- what you need to know about life insurance. also, a "suze follow up." tell me what has happened since you were here. >> it's the least amount of consumer debt we've had in over two years. it's changed my life. >> and you ask me, "can i afford it?" >> i want to buy an industrial embroidery machine. it costs about $12,000. >> but wait. you have more expenses than you do income. >> well, right now i do. >> hi, everybody.


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